Course Description
This course provides introduction to real estate accounting. Topics include accounting principles related to real estate, financial analysis, project development costs and revenue recognition. In addition, the course explores different organizational structures, financial statement presentations and accompanying disclosures. Student will use computer software for project costing, budgeting and variance analysis.
Course Content
- Forms of real estate organizations
- Accounting for operating property revenues and expenses
- Operating expense reconciliation and recoveries
- Lease incentives and tenant improvements
- Budgeting for operating properties
- Variance analysis
- Real estate valuation and investment analysis
- Accounting for real estate investments and acquisition costs
- Accounting for project development costs on GAAP basis
- Real estate development revenue recognitions
Learning Activities
Lecture and/or seminar
All methods of instruction apply to in class, hybrid and/or online modes of learning.
Means of Assessment
Assessment will be in accordance with the Douglas College Evaluation Policy.
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Assignment(s) and/or test(s)
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10%-20%
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Term project (s)
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10%-30%
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Midterm Examination
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20%-30%
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Final Examination
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30%-40%
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100%
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Students must write the midterm examination and the final examination to obtain credit for the course.
Learning Outcomes
At the end of the course, the successful student should be able to:
- Evaluate forms of Real Estate Organizations.
- Analyze operating property revenues and expenses.
- Prepare operating expense reconciliation and recoveries.
- Identify lease incentives and tenant improvements.
- Prepare budgets for operating properties and perform variance analysis using a computer software.
- Prepare estate valuation.
- Analyze investment and related acquisition costs.
- Prepare and record project development costs and revenue recognitions when performance obligation is satisfied over time.
Textbook Materials
Real Estate Accounting Made Easy. Obioma A. Edisike. Latest Edition
OR other textbooks as approved by the Accounting department.
AND Instructor selected material relevant to real accounting under CPA Handbook.